Income Tax Slabs History in India

We all hate paying taxes, but like death taxes too are unavoidable! You may not know this but not very long ago (FY 1991-92) the minimum tax rate in India was 20% and the maximum 56%. So if you were in highest tax slab, you would more than half of your income to government, giving great incentive for not complying with tax laws and not to earn more!

Thankfully taxes have been bit rationalized, Now the high earners only need to pay one-third of their income as taxes (still high but seems low when compared historically)!

Below is the table showing the following since FY 1990-91:

Minimum Income for Tax

Lowest Tax Rate

Income at Which Highest Tax Rate Starts

Highest Tax Rate

Highest Tax Rate Including Surcharge

History of Income Tax Slabs in India

Financial Year

Minimum Income for Tax

Lowest Tax Rate

Income at which Highest Tax Rate Starts

Highest Tax Rate

Highest Tax Including Surcharge

1990 – 91

22,000

20%

100,000

50%

56.00%

1991 – 92

22,000

20%

100,000

50%

56.00%

1992 – 93

28,000

20%

100,000

40%

44.80%

1993 – 94

30,000

20%

100,000

40%

44.80%

1994 – 95

35,000

20%

120,000

40%

44.80%

1995 – 96

40,000

20%

120,000

40%

40.00%

1996 – 97

40,000

20%

120,000

40%

40.00%

1997 – 98

40,000

10%

150,000

30%

30.00%

1998 – 99

50,000

10%

150,000

30%

33.00%

1999 – 00

50,000

10%

150,000

30%

34.50%

2000 – 01

50,000

10%

150,000

30%

30.60%

2001 – 02

50,000

10%

150,000

30%

31.50%

2002 – 03

50,000

10%

150,000

30%

33.00%

2003 – 04

50,000

10%

150,000

30%

33.60%

2004 – 05

50,000

10%

150,000

30%

33.60%

2005 – 06

50,000

10%

150,000

30%

33.60%

2006 – 07

50,000

10%

150,000

30%

33.60%

2007 – 08

110,000

10%

250,000

30%

33.90%

2008 – 09

110,000

10%

250,000

30%

33.90%

2009 – 10

160,000

10%

500,000

30%

33.90%

2010 – 11

160,000

10%

500,000

30%

30.90%

2011 – 12

180,000

10%

800,000

30%

30.90%

2012 – 13

200,000

10%

1,000,000

30%

30.90%

2013 – 14

200,000

10%

1,000,000

30%

33.99%

2014 – 15

250,000

10%

1,000,000

30%

33.99%

2015 – 16

250,000

10%

1,000,000

30%

34.61%

2016 – 17

250,000

10%

1,000,000

30%

35.54%

2017 – 18

250,000

5%

1,000,000

30%

35.54%

2018 – 19

250,000

5%

1,000,000

30%

35.88%

2019-20

250,000

5%

1,000,000

30%

35.88%

The important points to note are:

Highest Tax Rate Including Surcharge has come down from 56% in FY 1990-91 to 30.9% since 2010-11 and has again gone up from FY 2013-14 (for income above Rs 1 Crore)

The exemption limit for Income Tax has also increased more than 10 times from Rs. 22,000 in 1990-91 to Rs. 2.5 Lakhs in FY 2014-15

Yes! there is no doubt the taxes have become more rational than it was. But still there is scope of lot of improvement. Direct tax code was step in the right direction but it has already been modified and still its Work in progress!

Dear Sir, I had read he report “Income Tax Slabs History in India” which gives various details from 1991. A special reuest: As I have to urgently put up a claim to IT Dept for Refund (related to previous 20 years) can you please send me the details of entire IT Slabs / Surcharge etc from 1991 upto date. It will be very much helpful.

MURUGAIYAN Your issue seems complicated and I would advice you to contact an expert on tax laws or a CA and help you file your IT returns for 20 years. In the mean time I might try to get you 20 years Income tax slab details.

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